Which of the following statements is MOST CORRECT? Question 3 Not yet answered Points out of 5 Select one: a. Agency conflicts between stockholders and managers are not really a problem when non-managers own shares in a firm. Flag question b. The threat of takeovers reduces conflict of interest problems, but only between bondholders and stockholders. c. The conflicts between bondholders and stockholders can not be reduced with the use of restrictive bond covenants. O d. Managers may not operate in stockholders' best interests. As long as managers stay within the law, there are no effective controls that stockholders can implement to control managerial decision making. O e. Compensating managers with stock options can help reducing potential conflicts between stockholders and managers. Question 4 Not yet answered Which of the following statements is correct? Points out of 5 P Flag question Select one: O a. If an investor sells shares of stock through a broker, it would be a primary market transaction. O b. Capital markets include markets for US. T-bills. c. Derivative transactions can only be used to speculate market movements. O d. Money markets include markets for common stocks. e. A larger bid-ask spread means that the dealer will realize a larger profit. Which of the following statements is MOST CORRECT? Question 3 Not yet answered Points out of 5 Select one: a. Agency conflicts between stockholders and managers are not really a problem when non-managers own shares in a firm. Flag question b. The threat of takeovers reduces conflict of interest problems, but only between bondholders and stockholders. c. The conflicts between bondholders and stockholders can not be reduced with the use of restrictive bond covenants. O d. Managers may not operate in stockholders' best interests. As long as managers stay within the law, there are no effective controls that stockholders can implement to control managerial decision making. O e. Compensating managers with stock options can help reducing potential conflicts between stockholders and managers. Question 4 Not yet answered Which of the following statements is correct? Points out of 5 P Flag question Select one: O a. If an investor sells shares of stock through a broker, it would be a primary market transaction. O b. Capital markets include markets for US. T-bills. c. Derivative transactions can only be used to speculate market movements. O d. Money markets include markets for common stocks. e. A larger bid-ask spread means that the dealer will realize a larger profit